The Euro printed new yearly lows yesterday, piercing through the 1.09 level, after weaker than expected German & Italian CPI data putting pressure on the Single currency bulls. Bond yields continue to favor the US, as the EU offers mainly negative rates. As long as that is the case, then the overall sentiment will remain bearish. Today, all eyes will be on German Manufacturing PMI, as the market expects further contraction in that area. Later in the day, the US will publish its own ISM Manufacturing PMI; expected to stabilize again above 50. Finally, ECB President Draghi will be having a speech where he will most probably be commenting on the monetary policy, any dovish remarks will push the common currency lower.
The Single currency broke to multi-year lows, below 1.09, yesterday, as the bearish domination prevails. The sellers are looking to extend their gains by retesting 1.0850 or even the long-term channel support, which is around 1.0830. The bulls, on the other hand, look hopeless for now, with no support in sight until 1.0850.
Support: 1.0885 / 1.0850
Resistance: 1.0905 / 1.0930